The Value of Housing Characteristics: A Meta Analysis

Posted: 18 May 2006

See all articles by G. Stacy Sirmans

G. Stacy Sirmans

Florida State University - Department of Risk Management/Insurance, Real Estate and Business Law

Lynn MacDonald

Florida State University - Department of Economics

David A. MacPherson

Trinity University; IZA Institute of Labor Economics

Emily Norman Zietz

Middle Tennessee State University - Department of Economics and Finance

Abstract

This paper provides a meta regression analysis of the nine housing characteristics that appear most often in hedonic pricing models for single-family housing: square footage, lot size, age, bedrooms, bathrooms, garage, swimming pool, fireplace, and air conditioning. Meta regression analysis is useful for comparing the estimated regression coefficients from different studies. The goal in this study is to determine if the estimated coefficients vary by geographical location, time, type of data, and model specification. The results show that the estimated coefficents for some characteristics vary significantly by geographical location. These include square footage, lot size, age, bathrooms, swimming pool, and air conditioning. Controlling for time shows that the effects of these housing characteristics on house price have not changed over time. Controlling for type of data produces differences in coefficients for bathrooms. Controlling for wealth as measured by median household income has no significant impact on the coefficients for the housing characteristics. If the study controlled for square footage, the coefficients for lot size decrease. Controlling for the size of the hedonic model affects the coefficient for square footage.

Suggested Citation

Sirmans, G. Stacy and MacDonald, Lynn and MacPherson, David A. and Norman Zietz, Emily, The Value of Housing Characteristics: A Meta Analysis. Journal of Real Estate Finance and Economics, Vol. 33, No. 3, 2006, Available at SSRN: https://ssrn.com/abstract=902880

G. Stacy Sirmans (Contact Author)

Florida State University - Department of Risk Management/Insurance, Real Estate and Business Law ( email )

College of Business
Tallahassee, FL 32306
United States
850-644-8214 (Phone)
850-644-4077 (Fax)

Lynn MacDonald

Florida State University - Department of Economics ( email )

288 Bellamy Building
Tallahassee, FL 30306-2180
United States

David A. MacPherson

Trinity University ( email )

San Antonio, TX 78212
United States
210-999-8112 (Phone)
210-999-7255 (Fax)

HOME PAGE: http://www.davemacpherson.com

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Emily Norman Zietz

Middle Tennessee State University - Department of Economics and Finance ( email )

Murfreesboro, TN 37132
United States
615-895-6027 (Phone)

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